KSD Reports 1,123 Trillion KRW in Short-Term Bonds Last Year, Up 0.5% Year-on-Year

[Asia Economy Reporter Oh Ju-yeon] The Korea Securities Depository announced on the 9th that the total issuance amount of short-term bonds in 2019 was 1,123.1 trillion KRW, a 0.5% increase compared to the previous year (1,117.5 trillion KRW). The average daily issuance amount was 4.5 trillion KRW, similar to the previous year.

The issuance volume of short-term bonds has steadily increased since the system was introduced on January 15, 2013, with a total of 5,872.5 trillion KRW issued over seven years until last year.

By type, general short-term bonds were issued at 937.9 trillion KRW, a 3.8% decrease compared to the previous year (974.5 trillion KRW), while securitized short-term bonds increased by 29.5% to 185.2 trillion KRW from 143 trillion KRW the previous year.

By maturity, issuance within 3 months increased by 0.5% to 1,119.9 trillion KRW compared to the previous year (1,114.7 trillion KRW), accounting for the majority (99.7%) of total issuance. Ultra-short-term bonds (within 7 days) were issued at 728.5 trillion KRW, an 8.8% decrease from the previous year (798.6 trillion KRW), but still accounted for the largest share at 64.9% of total issuance.

Issuance by credit rating decreased as the rating lowered in the order of A1, A2, and A3 or below. Among these, A1-rated issuance amounted to 1,019.2 trillion KRW, accounting for 90.8% of total issuance, indicating no significant change in preference for safe asset investment.

The number of issuing companies increased by 7.2% from the previous year to 3,665 companies. By industry, issuance volume was highest in securities companies (649.1 trillion KRW), followed by securitization companies (185.2 trillion KRW), card and capital companies (114.5 trillion KRW), public enterprises (61.6 trillion KRW), other financial businesses (61.3 trillion KRW), and general companies (51.4 trillion KRW).

Foreign currency-denominated short-term bonds were issued at 1,415 million USD, a 132.2% increase compared to the previous year (609 million USD), with a total cumulative issuance amount of 2,291 million USD.

This content was produced with the assistance of AI translation services.